I learned important lessons early in my career about internal audit independence and the impairments that can come from reporting relationships. I began my career as a civilian internal auditor for the U.S. Army. At the time, we had more than 1,900 internal review (audit) auditors in more than 300 Army installations and commands around the world. Virtually every one of them worked directly for the comptroller — essentially the equivalent of a corporate chief financial officer (CFO).
Recognizing the importance of auditor independence throughout government, the U.S. comptroller general soon strengthened the independence standards for government auditors and issued new standards that required internal auditors to report to the “head or deputy head” of government agencies.…
Anyone who knows me or follows this blog and my social media presence knows that I am not “thin-skinned” when it comes to constructive criticism of the internal audit profession. I am confident in the remarkable progress that our profession has made and the stature that it now enjoys. I even discuss opportunities for our profession to improve when speaking at internal audit conferences and other events because I believe bringing issues to light can make our profession stronger. But when I read what I believe is misleading research, or when I see inaccurate headlines/articles directed at the profession, I will always make a vigorous effort to set the record straight.…